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"Straight  Line'*  Textile  Calculations 

Cost  Finding 

in 

Woolen   and  Worsted  Mills 


SAMUEL  S.  DALE 


PUBLISHED  BY 


BOSTON,  MASS. 


COPYBIGHT,   1918 

BY  SAMUEL  S.  DALE. 


CONTENTS 


Introduction 


Cost  of  Raw  Material 
Sorted  Wool 
Wool  in   Worsted  Top 
Wool  in  Worsted  Yarn 
Stock  in  Woolen  Yarn 
Stock  in  Cloth 
Material  in  Union  Goods 

Cost  of  Manufacturing 

Essentials  in  Cost  Finding    . 
Record  of  Production  and  Cost 
Fixed  Charges  Per  Yard 
Cost  Averages 

Cost  of  Each  Fabric 
Raw  Material  Cost 
Manufacturing  Cost 
Manufacturing  Worsted  Yarn 
Manufacturing  Woolen  Yarn 


417552 


Introduction 

From  a  business  standpoint  it  is  of  vital  importance 
for  every  manufacturer  to  know  the  cost  of  each  fabric 
made  in  his  mill.  Without  such  knowledge  the  busi- 
ness of  manufacturing  becomes  guesswork  and  the 
manufacturer  may  find  too  late  that  his  goods  have 
been  sold  at  a  loss  because  of  too  low  an  estimate  of 
cost  or  that  they  have  not  been  sold  at  all  because  the 
price  was  fixed  above  the  market  as  a  result  of  the  cost 
estimate  being  too  high. 

The  diversity  in  textile  fabrics  is  so  great  and  the 
conditions  of  manufacture  vary  so  widely  in  different 
mills  that  it  is  impossible  to  give  general  directions 
for  cost  finding  that  would  suit  every  case.  All  of  the 
operations  of  converting  raw  material  into  the  fin- 
ished product  may  be  carried  on  in  one  mill.  Fre- 
quently however,  the  material  is  taken  in  a  partially 
manufactured  condition  from  one  mill  to  another, 
where  the  work  is  advanced  or  completed.  Some 
parts  of  a  fabric  may  be  made  from  the  raw  stock  in 
one  mill,  while  other  parts  of  the  same  fabric  may 
have  been  made  in  several  mills. 


Cost  of  Raw  Material 

The  calculation  of  the  cost  of  raw  material  in  yarn 
or  cloth  is  a  comparatively  simple  operation.  To  make 
this  calculation  it  is  necessary  to  know  the  original 
cost  of  the  stock  as  received  at  the  mill,  together  with 
the  shrinkage  in  manufacturing  and  the  value  of 
waste  products. 

The  value  of  the  waste  products  is  sometimes 
omitted  from  the  calculations,  with  the  object  of  hav- 
ing the  omission  of  this  factor,  which  reduces  the  cost, 
compensate  for  possible  errors  in  other  items ;  in  other 
words,  that  the  estimate  may  be  on  the  "safe  side." 
The  value  of  the  waste  products  is  too  large  in  some 
cases  (worsted  yarn,  for  example)  to  be  omitted  and! 
it  is  preferable  to  allow  for  it  in  all  cases. 

The  most  elusive  factor  in  calculating  the  cost  of 
raw  material  is  the  shrinkage  ini  manufacturing.  This 
varies  with  different  grades  of  stock  and  can  be  de- 
termined only  by  careful  tests  of  large  quantities  of 
material  passing  through  the  mill.  A  system  of  re- 
ports should  be  established  to  show  the  quantity  of 
finished  material  obtained  from  lots  of  stock  delivered 
to  different  departments. 

Take  a  worsted  mill  for  example.  Each  lot  of  wool 
as  it  is  purchased  should  be  numbered  and  known  by 
this  number  in  the  mill.  Sorting,  scouring,  combing 
and  spinning  tests  of  each  purchase  should  be  made  on 
a  scale  sufficiently  large  to  give  reliable  results. 


.Si^lyl"^^^    ;   WOOL  COST  FINDING 

Cost  of  Sorted  Wool 

The  sorting  test  will  show  the  quantity  of  each  sort 
obtained  from  the  wool,  and  a  comparison  of  the  test 
with  those  of  previous  lots  will  show  whether  the  wool 
is  yielding  better  or  poorer  results.  This  sorting 
test  should  be  made  on  as  large  a  scale  as  convenient. 
A  record  of  the  weight  of  each  sort  is  made  and  tlie 
value  of  the  side  sorts  (that  is,  all  except  the  body 
sorts)  is  estimated  and  deducted  from  the  total  cost 
of  the  lot,  the  remainder  representing  the  cost  of  the 
body  sort.  The  cost  of  the  latter  per  pound  is  then 
readily  calculated.  The  following  example  will  illus- 
trate the  operation : 

Ex.  A  lot  of  1 0,6 1 8  pounds  of  Australian  3/8 
blood  crossbred  wool  cost  $2,276.50,  or  21  44/100 
cents  per  pound,  delivered  at  the  mill.  When  sorted 
there  were*  besides  the  3/8  body  sort,  burry  valued  at 
12  cents,  fribs  at  12  cents,  cotted  wool  at  12  cents  and 
1/4  blood  wool  at  20  cents  per  pound.  The  following 
statement  gives  the  quality  of  each  sort  and  method  of 
calculating  the  cost  of  the  3/8  body  sort : 

10,618  pounds      21  44/100  cts.  $2,276.50 

Side  sorts : 

Burry,  70  lbs.  12  cts.       $8.40 

Fribs,  32  lbs.  12  cts.         3.84 

Cotted  wool,  5  lbs.  12  cts.  .60 

1/4  blood  wool,  200  lbs.  20  cts.       40.00  52.84 

3/8  blood  body  sort,  10,311  lbs.  $0.2157  $2,223.66 

The  cost  of  the  body  sort  per  pound,  $.2157,  is 
found  by  dividing  the  total  cost,  $2,223.66,  by  the 
number  of  pounds,  10,311. 


WOOL  COST  FINDING  9 

Cost  of  Wool  in  Worsted  Top 

The  combing  test  is  the  best  method  for  indicating 
the  manufacturing  value  of  the  wool.  The  principle 
on  which  the  test  is  made  is  the  same  as  that  of  the 
sorting  test.  A  large  lot  of  the  body  sort  is  kept  sep- 
arate during  the  scouring,  carding  and  combing  proc- 
esses. The  waste  and  combed  top  from  the  lot  are 
carefully  weighed.  The  value  of  the  waste  products 
is  estimated  and  deducted  from  the  original  cost  of  the 
lot.  The  remainder  represents  the  cost  of  the  wool 
in  the  combed  top,  from  which  the  cost  per  pound  is 
obtained  by  dividing  by  the  number  of  pounds  of  top. 

The  following  illustration  will  show,  the  method  of 
calculation : 

Ex.  Ten  thousand  pounds  of  the  3/8  body  sort  of 
the  Australian  wool  referred  to  in  the  preceding  ex- 
ample was  tested  to  determine  the  cost  of  the  combed 
top.  The  following  statement  shows  the  quantity  of 
by-products  and  top,  also  the  valuation  of  the  by-prod- 
ucts and  raw  stock,  and  the  cost  of  the  top : 
10,000  pounds    (grease   weight)    3/8  blood 

Australian  21   57/100  c.  $2,157.00 

By-products : 

1 1.4  per  ct.  noil,  757  lbs.       i6cts.  $121.12 
2.5  per  ct.  card  waste, 

166  lbs.  10  cts.       16.60 

.2  perct.  bur  waste,  13  lbs.  i  ct.  .13 

.9perct.  lap  waste,  61  lbs.  20  cts.       12.20      150.05 
85  per  cent,  top,  5,655  lbs.  35  1/2  c.  $2,006.95 

100  per  cent,  clean  weight,  6,652  lbs. 

Loss  in  scouring,  33  1/2  per  cent. 

Such  tests  show  the  value  of  the  particular  lot 
tested  and  also  enable  a  comparison  to  be  made  be- 
tween the  cost  of  the  products  obtained  from  different 
kinds  of  materials.       By  this  comparison  the  stock 


lo  WOOL  COST  FINDING 

yielding  the  best  results  in  manufacturing  is  disclosed. 
This  is  illustrated  by  the  above  test  of  Australian 
crossbred,  which  was  made  to  determine  whether  this 
kind  of  wool  was  more  profitable  than  the  3/8  un- 
washed Virginia,  which  had  been  used  for  years  in 
the  same  mill.  The  tests  of  the  Virginia  wool  re- 
sulted as  follows : 

Sorting  Test: 

77  bags,  12,938  lbs.      20  cents  $2,587.60 

Burry,  359  lbs.  12  cents      $43.08 

Stained,  70  lbs.  12  cents        8.40 

Seedy,  7  lbs.  12  cents  .84 

Clips,  53  lbs.  I  1/4  cents  .66 

Strings,  74  lbs.  1/2  cents  .37 

1/4  blood,  830  lbs.        12  cents    '   99.60 
Low  wool,  67  lbs.  10  cents         6.70        159-65 

Invisible  loss,  10  lbs. 

3/8  blood  body  sort,  11,468  lbs.  $.2111  $2,427.95 
Combing  Test: 

11,468  lbs.  (grease  weight)  21.17  cents  $2,427.95 
By-products : 

1 1.6  p.  c.  noil  709  lbs.   16  c.  $1 13.44 

2.9p.  c.  card  waste    174  lbs.   10  c.       17.40 
.4  p.  c.  bur  waste        26  lbs.     i  c.  .26 

.6p.  c.  lap  waste         34  lbs.  20  c.         6.80      137.90 
84  1/2  per  cent,  top   5140  lbs.  44  1/2  c.        $2,290.05 
100  per  cent,  clean  weight,  6083  lbs. 
Loss  in  scouring,  47  per  cent. 

A  comparison  of  these  two  tests  shows  that  the 
Australian  top  costs  9  cents  per  pound  less  than  the 
Virginia  top.  What  this  difference  meant  may  be 
more  clearly  realized  when  we  consider  that  the  mill 
in  question  operated  seven  combs,  which  produced 
about  2,000  pounds  of  top  per  day.  The  difference 
of  9  cents  per  pound  would  amount  to  $180  per  day 


WOOL  COST  FINDING  n 

or  $54,000  per  year.  This  expensive  Virginia  wool 
had  been  used  exclusively  for  twenty  years  in  this 
particular  mill  for  this  grade  of  top,  the  judgment  of 
the  wool  buyer  having  been  accepted  as  conclusive  as 
to  the  value  of  the  wool  during  that  time. 

This  case  illustrates  the  importance  of  accuracy  in 
mill  tests  to  determine  the  waste  and  cost  of  the  ma- 
terial in  process.  Practically  the  same  proportion  of 
top  was  obtained  from  the  clean  wool  of  each  grade, 
the  difference  in  the  cost  of  the  top  being  due  to  the 
difference  in  loss  in  scouring,  which  was  33  1/2  per 
cent,  for  the  Australian  wool  and  47  per  cent,  for  the 
Virginia.  The  Australian  wool  served  the  purpose 
better  than  the  Virginia,  being  longer,  stronger,  equal 
in  quality  and  containing  less  impurities.  The  lots 
tested  were  bought  about  the  same  time  and  at  prevail- 
ing market  rates. 

Cost  of  Wool  in  Worsted  Yarn 

The  calculation  of  the  raw  material  cost  of  yarn  is 
based  on  the  same  general  principle  as  for  top.  If  the 
cost  of  worsted  yarn  is  to  be  calculated,  a  test  is  made 
with  a  large  lot  of  worsted  top.  The  following  illus- 
tration will  make  the  calculation  clear  without  further 
explanation : 

The  5,655  pounds  of  Australian  top  above  referred 
to  yielded  when  spun  280  pounds  of  waste  worth  20 
cents  per  pound  and  5,090  pounds  of  yarn,  showing  an 
invisibles  loss  of  285  pounds,  due  to  evaporation  of 
moisture  in  the  top. 

The  cost  of  the  wool  per  pound  of  yarn  is  found  as 
follows : 

5,655  lbs.  3/8  blood  Australian  top  35  1/2  c.  $2,006.95 
Waste,  280  lbs.  20  cents  56.00 

Raw  material  cost  of  yarn,  5,090  lbs.  38.3  c.  $1,950.95 


12  WOOL  COST  FINDING 

Tests  of  each  grade  of  top  are  made  to  determine 
the  percentage  and  value  of  waste  and  the  amount  of 
invisible  loss.  The  data  thus  obtained  are  used  for 
calculating  the  cost  of  yarn  made  from  higher  or  lower 
priced  top. 

In  the  test  just  given  we  find  that  the  3/8  top  yields 
90  per  cent,  of  yarn  and  5  per  cent,  of  waste,  the  lat- 
ter worth  20  cents  per  pound,  while  there  is  an  invisi- 
ble loss  of  5  per  cent.  The  calculation  of  cost  of  yarn 
from  top  at  a  given  price  is  shown  by  the  following 
example : 

Ex.  Find  raw  material  cost  of  yarn  made  from 
3/8  top  costing  32  1/2  cents  per  pound,  with  shrinkage 
and  waste  as  given  below. 

100  lbs.  top  at  32  1/2  cents  $32.50 

5  lbs.  waste  at  20  cents  1,00 

90  lbs.  yarn  $31 -50 

$31.50  -f-  90  =  35  cents,  cost  of  top  for  one  pound 
of  yarn. 

Cost  of  Stock  in  Woolen  Yarn 
Calculating  the  cost  of  raw  material  in  woolen  yarn 
is  based  on  the  same  principle  as  in  the  case  of  worsted 
yarn.  A  test  of  a  large  lot  is  first  made  to  determine 
the  amount  of  waste  and  yield  of  yarn.  The  value  of 
the  waste  is  then  deducted  from  the  cost  of  the  lot,  and 
the  remainder,  which  is  the  cost  of  the  raw  stock  in 
the  yarn,  is  divided  by  the  number  of  pounds  of  yarn 
to  get  the  cost  per  pound. 

Ex.  The  stock  for  a  frieze  fabric  is  composed  of 
the  following  mixture: 

20  per  cent.  Bagdad  wool  18  cents 

20  per  cent,  pulled  wool  17     " 

15  per  cent,  scoured  wool  24     " 

10  per  cent,  card  waste  6    " 


WOOL  COST  FINDING  13 

10  per  cent,  sweepings  4 

5  per  cent,  headings  5 

20  per  cent,  yarn  waste  12 
The  stock    yields    75  per  cent,  of    yarn,  the  waste 
products  being  as  follow : 

10  per  cent,  card  waste       6  cents 

2  per  cent,  yarn  waste     10  cents 

3  per  cent,  invisible  loss. 

Find  the  cost  of  the  stock  per  pound  of  yarn. 
The  average  cost  of  the  batch  is  found  as  follows : 


20  lbs.  Bagdad                            .18 

$3.60 

20     "     pulled                              .17 
15     "     scoured                           .24 
15     "     card  waste                      .06 

340 

3.60 

.60 

10     "     sweepings                        .04 

5     "     headings                          .05 

20     "     yarn  waste                     .12 

.40 

•25 
2.40 

100     " 

14.25 

$14.25  -f-  100  =  14  1/4  cents  per  lb. 
Then: 

100  lbs.  picked  stock  at  14  1/4  cents 
10     "     card  waste                .06         .( 

5o 

$14.25 

2     "     yarn  waste                .10         .: 

20 

.80 

75     "     yarn  cost 
$13.45  -f-  75  =  $.179,  cost  of  stock 

per 

$1345 
pound  of 

yarn. 

The  waste  in  weaving  is  not  included 
cent,  shrinkage. 

Cost  of  Stock  in  Cloth 

in 

the  25  per 

The  raw  material  received  by  the  mill  may  be  in  the 
form  of  raw  stock,  such  as  cotton*  wool  and  shoddy, 
or  partelly  manufactured  material,  such  as  worsted 
tops  and  yarn. 

If  partially  manufactured  its  cost  includes  the  cnst 
of  labor  and  other  expenses  in  the  processes  through 
which  it  has  already  passed. 


14  WOOL  COST  FINDING 

If  the  cloth  is  made  of  one  grade  of  yarn  only,  cot- 
ton, woolen,  worsted  or  other  material,  the  cost  of  the 
raw  material  per  finished  yard  is  readily  calculated 
from  the  original  cost  of  the  raw  material,  the  weight 
of  the  finished  goods,  and  the  shrinkage  between  raw 
stock  and  finished  cloth. 

Ex.  A  worsted  serge  is  made  from  2/32S  yarn  cost- 
ing 76  cents  per  pound.  The  by-product  consists  of 
21/2  lbs.  of  yarn  waste  worth  25  cents  a  pound  for 
every  100  lbs.  of  yarn.  The  waste  of  warp  is  neg- 
ligible. The  cloth  loses  12  per  cent,  in  weight  during 
finishing,  the  value  of  the  waste  products,  flocks,  head- 
ings, etc.,  being  negligible.  Find  the  cost  of  yarn  in 
one  yard  of  cloth  weighing  15  1/2  ounces. 

100  lbs.  yarn  ."jd  $76.00 

21/2      "     waste  .25  .63 

97  1/2      "     of  woven  cloth  $75-37 

97  1/2  X  .88  =  finished  weight,  85.8  pounds. 

$75-37  "^  85.8  =  $.878,  cost  of  yarn  per  pound  of 

finished  cloth. 

At  this  rate  the  cost  of  the  yarn  for  one  yard,  15  1/2 
ounces  of  cloth  is: 

(.878  X  15  i/2X-^-  16=  .85,    cost  of  yarn   per  yard. 
15  1/2  ounces. 
Another  method  of  calculation  is  as  follows,  taking 
the  same  example  for  illustration : 

15  1/2  -f-  .88    =  17.61  ozs.  woven  cloth 
17.61  -^  .975  =  18.06  ozs.  yarn  per  finished  yard 
18.06  X  .025  =      .45  ozs.  yarn  waste 
18.06  ozs.  yarn  .y(i  $857 

.45  ozs.  yarn  waste       .25  .007 

Cost  of  yarn  per  yard  .85     per  lb. 

Ex.  A  worsted  fabric  is  made  with  4,200  ends 
2/36S  worsted,  65.5  inches  in  loom,  62  picks  2/36S 
worsted.  The  yarn  costs  $1.10  per  pound.  The 
waste  in  spooling,  warping^  and  weaving  is  4  per  cent. 


WOOL  COST  FINDING  15 

of  the  total  weight  o£  the  yarn  and  the  loss  of  weight 
in  finishing  is  10  per  cent,  of  the  woven  weight.  The 
waste  product  is  3  per  cent,  yarn  waste  worth  25  cents 
per  pound.  Find  the  cost  of  yarn  per  finished  yard 
weighing  12  ounces. 

100  finished  yards  =  75  lbs.  finished 
75  -f-  .90  =  83  1/3  lbs.  woven 
83  1/3  -^  .96  =  87  lbs.  yarn 

Sy  lbs.  yarn  X  $1.10  $95-70 

&j?4bs»  yarn  X  $1.10 

2.6  lbs.  waste        .25  .65 

100  yds.  finished,  .95  per  yd.  $95-05 

A  frieze  fabric  made  from  a  mixture  costing  14  1/4 
cents  per  lb.  at  the  picker,  weighs  30  ounces  per  yard. 
The  loss  of  weight  up  to  and  including  the  weaving 
process  is  27  per  cent.     The  loss  of  weight  in  finishing 
is  18  per  cent.     The  waste  products  are  as  follows: 
15  per  cent,  card  waste     6  cents 
6  per  cent,  yarn  waste  10  cents 
Find  cost  of  raw  stock  per  pound  and  yard  of  cloth. 
100  lbs.  picked  stock  at  14  1/4  cents  $14-25 

15  lbs.  card  waste  at  6  cents  .90 

6  lbs.  yarn  waste  at  10  cents  .60  1.50 

73  lbs.  woven  cloth  -  12.75 

$12.75  -^  73  =  -175  cost  of  stock  per  woven  pound 

7S  X  .82  =  .59.9  lbs.  finished  cloth 
$12.75-4-  59.9  =  .213  cost  of  stock  per  finished  pound 
(.213  X  30)  -i-  16=  .399,  cost  of  stock  per  fin.  yd., 
30  ozs. 

The  same  result  is  obtained  from  the  cost  per  woven 
pound  and  the  loss  in  finishing: 

.175  -f-  .82  =  .213,  cost  of  stock  per  finished  pound 

Another  direct  method  of  calculation  is  based  on 
the  cost  of  the  picked  stock  per  pound  and  the  shrink- 
age from  picked  sto^to  finished  cloth : 

•73  X  .82  =  59.9'"^r  cpnt. -shriakage_frQirL-stQck-4» 
finished  cloth.  ' 


i6  WOOL  COST  FINDING 

.1275  "^  -599  ~  -^^3?  ^^^^  ^^  stock  per  pound  per 
cloth. 

Ex.  A  woolen  cassimere  is  made  of  wool  costing 
56  cents  per  scoured  pound.  The  shrinkage  from 
scoured  wool  to  woven  cloth  is  22  per  cent.,  of  which 
9  per  cent,  is  card  waste  valued  at  8  cents  per  pound, 
and  4  per  cent,  is  yarn  waste  valued  at  14  cents  per 
pound.  The  loss  of  weight  in  finishing  is  16  per  cent. 
Find  cost  of  wool  per  yard  of  15  1/2  ounces. 

The  value  of  the  waste  products  are  first  deducted 
from  the  cost  of  the  wool. 

100  lbs.  wool  .56  $56.00 

9  lbs.  card  waste  .08  .y2 

4  lbs.  yarn  waste  .14  .56          1.28 

100  lbs.  wool  5472 

$54.72  -^  100  =  .547,  net  cost  of  wool  per  lb. 
Material  required  per  finished  yard : 

15-5    -^.84=18.45  ozs.  woven 

18.45  "^  -7^  —  23.65  ozs.  wool. 

23.65  ozs.  .547  per  lb.  =  $.809,  cost  of  wool  per  yd. 

The  calculation  can  be  varied  as  follows,  the  result 
being  the  same : 

15  1/2  (ozs.)  -h-  .84  =  18.45  ozs.  woven  yarn 

18.45  "^  -78  —  23.65  ozs.  picked  stock. 

23.65  ozs.  .547  per  lb.  =  .809,  cost  of  wool  per  yd. 

When  all  the  material  in  a  fabric  is  of  the  same 
grade  and  cost,  a  calculation  of  the  cost  of  raw  ma- 
terial is  best  made  from  the  finished  weight  per  yard, 
loss  in  manufacturing  and  cost  of  raw  material  by 
weight  as  already  explained.  The  calculation  is  sim- 
plified and  chances  of  error  reduced,  as  it  is  not  neces- 
sary to  calculate  separately  the  weight  of  warp  and 
filling  per  yard. 


WOOL  COST  FINDING  17 

Cost  of  Material  in  Union  Goods 

The  same  method  may  also  be  used  for  finding  ihe 
cost  of  material  in  union  fabrics  composed  of  two  or 
more  kinds  of  yarns  having  different  values.  The 
calculation  is  more  complicated  owing  to  the  differ- 
ent degrees  of  shrinkage  for  the  materials  during  fin- 
ishing. 

The  cost  of  each  materal  is  calculated  separately. 
The  different  materials  used  in  union  cloths  are  sub- 
ject to  different  degrees  of  loss  in  finishing.  For  this 
reason  it  is  necessary  to  determine  first  the  propor- 
tions of  the  different  materials  in  a  woven  yard  or  cut. 
The  cost  per  finished  yard  is  then  calculated  from 
these  proportions,  the  cost  of  the  yarn  and  the  loss  of 
weight  in  finishing.  The  particular  method  to  be 
adopted  depends  somewhat  upon  the  composition  of 
the  fabric  and  can  be  best  explained  by  practical  ex- 
amples : 

Casket  Cloth. 

Ex.  A  cotton  warp  casket  cloth  is  made  with  3,000 
ends  2/28S  cotton,  costing  20  cents  per  pound,  91 
inches  in  the  loom,  36  picks  of  2  1/3  run  yarn.  The 
filling  stock  is  made  up: 

5  per  cent,  wool  65  cents 

15     "      "      cotton  15  cents 

80     "       "      shoddy  15  cents 

Average  cost,  17  1/2  cents. 

The  take-up  of  the  warp  is  6  per  cent. ;  of  filling,  5 
per  cent.  The  loss  of  weight  from  raw  stock  to  yarn 
is  20  per  cent.,'  including  weavers'  waste.  The  woven 
cloth  loses  75  per  cent,  of  its  weight  in  finishing.  There 
is  practically  no  loss  in  the  weight  of  the  cotton  warp 
in  finishing.     The  pieces  gain  2  per  cent,  in  length  in 


i8  WOOL  COST  FINDING 

finishing.       Find  the  cost  of   material   per   yard,    14 
ounces.     The  goods  are  finished  70  inches  wide. 

The  weight  of  cotton  warp  per  finished  yard  is  first 
calculated : 

3000  -i-  .94  =  3191  yards  warp. 

3 191  yards  2/28S  cotton  =  4.3  ozs.  cotton  yarn  per 

woven  yard. 
This  length  of  the  warp  is  increased  2  per  cent,  in 
finishing,  which  makes  the  weight  per  finished  yard  as 
follows : 

4.3  -^  1.02  =  4.2  ozs.  cotton  yarn  per  finished  yard. 
As  the  cotton  loses  nothing  in  weight  during  finish- 
ing, the  4.2  ounces  represents  the  finished  weight  of 
the  cotton. 

The  weight  of  the  filling  stock  is  next  calculated : 

14  -T-  .75  =  18.7  ozs.  yarn  per  finished  yard. 
18.7  —  4.2  =  14.5  ozs.  filling  yarn  per  finished  yard. 
As  the    picked  stock    shrinks    20  per  cent,  to    the 
woven  cloth,  we  have : 

14  1/2  -^  .80  =  18. 1  ozs.  picked  stock  per  finished  yd. 
The  cost  of  stock  is  then  calculated  as  follows : 
4.2  ozs.  cotton  yarn  .20     per  lb.         $.052 

1 8. 1  ozs.  picked  stock         .175  per  lb.  .198 

Cost  of  stock  per  finished  yard  $.25 

In  this  estimate  the  value  of  the  waste  products  from 
such  low-priced  stock  is  so  small  as  to  be  negligible. 

This  example  shows  how  the  presence  of  different 
materials  in  a  fabric  complicates  the  calculation  based 
on  weight,  shrinkage  and  cost  of  raw  material.  That 
method  is  to  be  preferred,  however,  whenever  it  can 
be  used,  as  it  dispenses  with  the  count,  length  and 
take-up  of  the  yarn  in  the  cloth  except  for  calculating 
the  proportion  of  the  different  materials,  thus  reducing 
the  liability  to  error.  Following  is  another  method 
involving  a  separate  calculation  of  the  length  and 
weight  of  each  kind  of  yam : 


WOOL  COST  FINDING  19 

Ex.     Same  as  preceding. 

Take  100  woven  yards  as  a  basis. 

(100X4.3)^-16  =  26.0  pounds  cotton  warp. 
(91  X  36)  -^  .95  =  3448  yds.  filling  per  yard. 
3448  -i-  233  =  14.8  ozs.  filling  per  yard. 
(14.8  X  100)  -^  16  =  92  1/2  lbs.  filling  yarn. 
$.175  -f-  .80  =  .219,  cost  per  pound  of  yarn. 
100  yards  woven  =102  yards  finished. 
26.0  lbs.  warp  20  $538 

92.5  lbs.  filling  .219  20.26 

$25.64 
$25.64  -^  102  =  $.251,  cost  of  raw  material  per 
finished  yard. 

Worsted  Serge. 

Ex.     Find  cost  of  raw  material  in  a  worsted  serge 
made  as  follows: 

4088  ends  2/32S  worsted,  63  inches  wide  in  loom, 
66  picks  2/32S  worsted.  Warp  yarn  costs  $1.05;  fill- 
ing, $.95  per  pound.  Take-up  1 1  per  cent,  in  warp,  5 
per  cent,  in  filling.  Shrinkage  in  finishing  2  per  cent. 
4088  ~  .89  =  4593  yards.  2/32S  =  8.21  ozs.  warp 
(63  X  66)  -^  .95  =  4377  yds.  2/32S  =  7.82  ozs.  filling 
Woven  weight  16.03  ozs. 

8.21  ozs.  warp  $1.05  per  lb.  $-539 

7.82  ozs.  filling  .95  per  lb.  .464 

Cost  per  woven  yard  $1,003 

$1,003  -^  .98  =  $1,023,  cost  per  finished  yard. 

The  problem  may  consist  (a)  in  calculating  the  cost 
of  raw  material  from  the  lay-out,  loss  of  weight  in  fin- 
ishing and  given  weight  per  finished  yard,  or  (&)  from 
the  lay-out  and  change  in  length  during  finishing.  The 
former  is  generally  the  case  when  the  goods  have  been 
made  in  sufficient  quantity  to  show  the  average  loss  of 
weight  in  finishing,  while  the  problem  is  found  in  the 


20  WOOL  COST  FINDING 

latter  form  when  calculating  for  new  fabrics  which 
have  not  yet  been  made  and  for  which  the  loss  of 
weight  can  only  be  estimated.  The  next  two  exam- 
ples, referring  to  the  same  fabric,  illustrate  the  two 
conditions. 

Ex.  Estimate  the  cost  of  raw  material  in  a  thibet, 
which  is  to  be  made  to  weigh  14  ounces  per  yard,  4000 
ends  2/40S  worsted,  83.3  inches  wide,  52  picks  5-run 
woolen.  Worsted  yarn  cost  $1.11  per  pound,  and 
loses  5  per  cent.,  of  which  4  per  cent,  is  worth  25  cents 
per  pound.  The  picked  stock  for  the  woolen  filling, 
consisting  of  1/3  fine  shoddy  at  14  1/2  cents  and  2/3 
wool  at  60  cents  per  pound,  loses  15  per  cent.,  of  which 
10  per  cent,  is  waste  worth  7  cents  per  pound.  Take- 
up  6  per  cent,  in  warp  and  5  per  cent,  in  filling.  Shrink- 
age in  length  in  finishing,  10  per  cent. 

100  yards  of  dressed  warp  is  taken  as  a  basis. 
100  yards  of  warp.     4000  ends  2/40S  worsted  = 
35.7  pounds  warp.       A  warp  take-up  of  6  per  cent, 
gives  94  woven  yards. 

(83.3  X  52)  -^  .95  ==  4569  yards  filling 
4569  -^  500  ==9.14  ozs.  filling 
(9.14  X  94)  -m6  =  53.7  lbs.  filling 
•Cost  of  warp  yarn,     icx)  lbs.  $1.11     $111.00 

4  lbs.  waste      .25  i.oo 

95  lbs.  yarn  $110.00 

$1.10  -^  .95  =  $1.16,  cost  of  worsted  per  woven  pound 
Cost  of  filling  stock.     33  lbs.  shoddy     .145     $4.78 
67  lbs.  wool         .60      40.20 
100  lbs.  $44.98 

10  lbs.  waste       .07  .70 

85  lbs.  yarn  $44.28 

$44.28  -f-  .85  =  $.521,  cost  of  filling  per  woven  pound 
37.7  lbs.  warp  at        $1.16  =  $41.41 
53.7  lbs.  filling  at         .521  =    27.98 
Total  $69.39 

94  X  .90  =  84.6  yards,  finished. 


WOOL  COST  FINDING  21 

$69.39  "="  ^4-6  —  $.^2,  cost  of  stock  per  yard  finished. 
Ex.  After  this  thibet  fabric  had  been  manufactured 
for  some  time  it  was  found  to  lose  4  per  cent,  from 
yarn  to  woven  cloth  and  17  per  cent,  in  finishing.  Esti- 
mate cost  of  raw  material  per  14-ounce  yard. 
4000  ends  2/40S  worsted  with  6 

per  cent,  take-up  6.08  ounces  warp 

83.3  inches  wide,  521  picks  5-run 

with  5  per  cent,  take-up  9.12       "      filling 

15.2         " 
Woven  weight  per  yard: 

6.08  ozs.  $1.16  per  lb.         $.440 

9.12  ozs.  .52  per  lb.  .296 

15-2    ozs.  $.736 

$.736 -M5.2  =  $.0484 

.0484  -^  .96  =  .0504,  cost  of  yarn  per  woven  ounce. 
.14  -^  .83  =  16.9  ozs.  woven  cloth  per  finished  yard. 
16.9  ozs.  $.0504  =  $.852,  cost    of    yarn    per   yard 

finished. 
Ex.     Find  the  cost  of  raw  material  in  a  cotton  warp 
beaver  made  as  follows: 

3840  ends  dressed  2  face,  31/2  runs,  i  backing  14s 
cotton,  y/  1/2  inches  wide,  54  picks,  woven  2 
face  4  1/4  runs,  i  backing  7/8  run.  Take-up  7 
per  cent,  in  filling.  Shrinkage  in  length  in  fin- 
ishing, 8  per  cent. 
Stock  for  face  warp: 

20  per  cent,  cotton  $.08  1/2 

40  per  cent,  wool  .60 

40  per  cent,  shoddy  .14  1/4 

Loss  to  woven  cloth  20  per  cent.,  of  which  15  per 
cent,  is  valued  at  5  cents  per  pound.       Cotton  warp 
yarn,  22  cents  per  pound,  no  waste. 
Stock  for  face  filling : 

10  per  cent,  cotton  $.08  1/2 

35  per  cent,  wool  .60 

55  per  cent,  shoddy  .14  1/4 


22  WOOL  COST  FINDING 

Loss  to  woven  cloth  22  per  cent.,  of  which  15  per 
cent,  is  valued  at  5  cents  per  pound. 
Stock  for  back  filling: 

5  per  cent,  wool  $.32  1/2 

15  per  cent,  cotton  .08  1/2 

80  per  cent,  waste  .06 

Loss  to  woven  cloth  35  per  cent. ;  waste  of  negligible 
value. 

The  cost  of  material  per  pound  of  woven  cloth  is 
found  as  already  explained : 

Face  warp  $.383 

Cotton  warp  .22 

Face  filling  .371 

Back  filling  .118 

The  quantity  of  material  in  one  woven  yard  is  next 
found : 

1289  "^  -93  —  1376  yards  14s  cotton  warp  =  1.87  ozs. 
2560  -f-.93  =  2753  yards  3  1/2  run  warp  =   7.86    " 
(77-5  X  36)  ^  .95  =  2937  yds.  4  1/4  run 

filling  =  6.91    " 

(77.5  X  18)  -^  .95  =  1468  yds.    7/8    run 

fillings  16.77    " 

Weight  per  woven  yard :  33-41    " 

These  weights  per  yard  are  extended  at  their  respec- 
tive values : 

1.87  ozs.  cotton  warp  .22        $.026 

7.86  ozs.  face  warp  .383  .188 

6.91  ozs.  face  filling  .371  .160 

16.77  <^zs.  back  filling  .118  .123 

Cost  of  material  per  woven  yard  $497 

$.497  -4-  .92  =  $.54,  cost  of  material  per  finished  yard. 
Whenever  possible,  it  is  preferable,  as  already 
stated,  to  calculate  the  cost  of  material,  as  in  the  above 
examples,  on  the  weiglit  of  the  finished  goods  and  the 
loss  of  weight  in  manufacturing. 


WOOL  COST  FINDING  23 

Cost  of  Manufacturing 

As  already  explained,  the  cost  of  raw  material  per 
yard  is  easily  calculated  from  the  weight  of  the  cloth, 
loss  of  weight  in  manufacturing,  and  original  cost  of 
raw  material.  With  these  quantities  and  values  known, 
the  estimate  of  cost  of  raw  stock  per  yard  is  easily 
made.  The  calculation  of  the  cost  of  labor  and  other 
expenses  per  yard,  however,  is  a  work  of  considerable 
difficulty  because  of  the  large  number  of  widely  differ- 
ent fabrics  frequently  made  in  the  same  mill.  While 
estimating  the  cost  of  labor  and  other  expenses  per 
yard  is  a  complex  problem  it  can  be  greatly  simplified 
by  a  method  adapted  to  the  conditions  in  the  mill  in 
which  the  goods  are  made. 

If  a  mill  is  running  steadily  on  one  grade  of  plain 
cloth,  making  no  change  in  the  quality  or  construction 
of  the  fabric  and  buying  raw  material  in  only  one 
form,  the  cost  of  labor  and  other  expenses  per  yard  is 
easily  found  by  dividing  the  total  of  such  items  for 
any  given  period  by  the  number  of  yards  manufac- 
tured in  the  same  time. 

Exceptional  conditions,  such  as  the  falling  behind 
of  the  work  in  the  finishing  room  or  an  increased 
product  in  the  same  room,  due  to  catching  up  with  the 
work  after  it  has  fallen  behind,  might  make  a  test  for 
a  short  period  unreliable  by  reason  of  a  production 
below  or  above  normal.  There  are  many  other  varia- 
tions that  would  make  a  short  test  unreliable,  such  as 
the  payment  or  non-payment  of  expenses  like  insur- 
ance and  taxes,  which  fall  due  only  at  long  intervals, 
and  which  should  be  spread  over  a  period  of  six  months 
or  a  year.     Thus  even  in  a  plain  goods  mill,  it  is  nee- 


24  WOOL  COST  FINDING 

essary  to  have  the  statement  cover  a  period  of  consid- 
erable length.  The  nearer  it  approaches  the  fiscal 
period,  the  nearer  will  the  result  approach  the  actual 
cost  of  production. 

The  following  example  taken  from  a  New  Eng- 
land flannel  mill  making  one  grade  of  white  flannel  on 
which  the  cost  of  labor  was  reckoned  by  the  pound, 
will  illustrate  this  elementary  method  of  determining 
the  cost  of  manufacturing.  The  other  items  of  ex- 
pense were  not  given  in  this  case,  but  can  be  calcu- 
lated by  the  pound  in  the  same  way : 

Woolen  flannel  mill,  13  sets  cards,  7.480  spindles. 
Total  cost  of  labor  for  6  months,  $42,912. 

Cloth  finished  same  period,  251,873  pounds. 

Cost  of  labor  per  pound  of  cloth,  17  cents. 

The  entire  product  consisted  of  a  piece-dyed,  woolen 
sacking  50  inches  wide,  weighing  71/2  ozs.  per  yard 
and  made  as  follows:  2100  ends  5  runs'  63.6  inches 
wide  in  loom,  32  picks,  5  runs. 

It  is  evident  that  the  cost  of  manufacturing  can  be 
very  accurately  determined  by  ths  simple  method,  pro- 
viding the  mills  are  kept  in  operation  and  the  produc- 
tion of  each  department  is  kept  equal  to  the  others  dur- 
ing the  period  covered  by  the  statement. 

The  application  of  this  method,  however,  is  neces- 
sarily limited  to  mills  making  only  one  kind  of  cloth. 
When  two  or  more  fabrics  are  made  in  the  same  mill, 
the  calculation  fails  to  give  the  cost  of  either. 

Let  us  assume,  for  illustration,  that  a  mill  is  making 
the  piece-dyed  flannel  given  above  and  also  a  wool-dyed 
cloth  made  as  follows: 

1000  ends  I  5/8  run,,  7  1/2x2  reed,  67  inches  in 
loom,  20  picks  2  run.  Finished  55  inches  wide,  12 
ounces  per  yard. 


WOOL  COST  FINDING  25 

Following  are  a  few  of  the  items  of  cost  which  vary 
widely  for  the  two  fabrics: 

Dyeing.  Higher  for  the  new  cloth  which  is  dyed 
in  the  wool. 

Carding  and  spinning.  Lower  for  the  new  cloth 
which  is  made  of  i  5/8  and  2  run  yarn  while  the  old 
fabric  is  made  from  5 -run  yarn.  A  woolen  card  would 
produce  three  of  four  times  as  much  roving  for  the 
coarser  yarn  as  for  the  finer. 

Weaving.  Lower  for  the  new  cloth,  which  is  woven 
with  20  instead  of  32  picks. 

Finishing.  Higher  for  the  new  cloth,  which  requires 
more  care  in  burling,  sewing,  fulling,  gigging,  shear- 
ing, and  specking. 

Fixed  charges.  Lower  per  pound  for  the  new  cloth' 
because  of  the  increased  production  of  the  card  on  the 
new  yarn. 

For  some  items,  dyeing  and  finishing,  the  cost  of 
the  new  goods  is  higher,  while  for  other  items,  card- 
ing, spinning,  weaving  and  fixed  charges,  the  cost  is 
lower  than  for  the  old  cloth.  The  problem  is  to  deter- 
mine the  actual  cost  of  each  fabric.  This  cannot  be 
done  by  assuming  the  average  cost  of  the  total  prod- 
uct of  the  mill  to  be  the  cost  of  the  two  cloths,  because 
the  probabilities  are  that  the  increase  of  certain  items 
of  expense  in  the  case  of  the  new  cloth  will  not  be  equal 
to  the  decrease  of  other  items.  For  this  reason  the  cost 
of  each  process  must  be  calculated  separately  for  each 
fabric. 

Taking  for  illustration  the  cost  of  carding  and  spin- 
ning for  the  two  fabrics  above  mentioned,  the  calcu- 
lation is  made  as  follows: 

We  will  assume  that  the  cost  of  carding  and  spin- 
ning in  this  mill  is  90  cents  per  hundred  runs  for  labor, 


26  WOOL  COST  FINDING 

and  10  cents  per  hundred  runs  for  supplies.       These 
rates  are  obtained  from  the    semi-annual    cost    state-^ 
ments  of  the  mill.     The  number  of  runs  of  yarn  in  i 
cut  of  each  fabric  is  calculated  as  follows: 
Old  Cloth;  146  runs  per  cut. 

Labor,  146  runs  .90,  $1.31  per  cut. 
$1.31  -^  50  =  $.026  per  yd.  finished. 
Supplies,  146  runs  .10,  $.15  per  cut. 
$.15  -f-  50  =  $.003  per  yd.  finished. 
New  Cloth;  84  runs  per  cut. 

Labor,  84  runs  $.90  per  C.  $.76  per  cut. 
$.76  ^  48  =  $.016  per  yd.  finished. 
Supplies  .84  runs  $.10  per  C.  $.08  per  cut. 
$.08  -^  48  =  $.002  per  yd.  finished. 
Carding  and  Spinning,  per  yard : 

Old  Cloth     New  Cloth 
Labor  $.026  $.016 

Supplies  .003  .002 

Total  .029  .018 

Essentials  in  Cost  Finding 

Illustrations  could  be  taken  from  every  department 
of  the  mill  showing  that,  in  order  to  determine  the  cost 
of  a  fabric  in  a  mill  making  two  or  more  fabrics,  it  is 
necessary : 

Firstj  to  keep  an  accurate  record  of  the  actual  pro- 
duction and  cost  of  each  department  or  process  of 
manufacturing  in  the  mill  in  question,  and  of  the 
items  of  general  cost  which  are  not  properly  chargeable 
to  any  particular  process.  The  average  cost  of  each 
department  is  based  on  the  respective  units  of  produc- 
tion, the  grease  weight  by  the  pound  for  sorting,  the 
scoured  weight  by  the  pound  for  picking,  the  number 
of  runs  for  carding  and  spinning,  the  section  cut  for 
warping,  and  the  equivalent  yardage  based  on  an  as- 


WOOL  COST  FINDING  27 

sumed  number  of  picks  per  inch,  say  50,  for  the  weave 
room  expenses  other  than  piecework,  and  for  the  fixed 
charges  of  the  mill. 

Second,  to  calculate  the  quantity  of  material  that 
must  be  put  through  each  process  to  produce  a  given 
quantity  of  the  fabric  on  which  a  cost  estimate  is  de- 
sired, extend  these  quantities  at  the  actual  average  of 
cost  in  the  respective  departments,  and  from  the  total 
of  the  items  thus  obtained  for  the  given  quantity,  cal- 
culate the  cost  per  yard  or  pound  of  finished  goods. 

The  value  of  such  an  estimate  depends  on  the  ac- 
curacy with  which  the  quantities  of  material  and  the 
cost  of  labor  and  supplies  in  each  department  are  de- 
termined. An  explanation  of  the  calculations  to  de- 
termine the  quantity  of  material  that  must  be  put 
through  each  process  for  a  given  quantity  of  cloth  is 
given  in  *' Straight  Line  Textile  Calculations,"  and 
need  not  be  repeated  here. 

The  cost  of  labor  and  supplies  in  each  department 
is  obtained  from  the  records  of  the  mill.  Special  and 
periodical  reports  are  required  for  this  purpose.  The 
particular  form  adopted  is  immaterial  providing  the 
desired  information  is  obtained.  The  form  will  have 
to  be  adapted  to  the  special  needs  of  each  mill. 


28  WOOL  COST  FINDING 

Record  of  Production  and  Cost 

Two  kinds  of  statistical  statements  should  be  issued. 
One  covers  a  short  period,  say  a  month,  the  other,  six 
months  or  a  year.  W  hen  the  payroll  is  made  up 
weekly  much  labor  can  be  saved  in  compiling  the  cost 
statements  by  making  each  cover  a  number  of  com- 
plete weeks,  each  period  ending  with  the  last  Saturday 
of  each  month.  These  statements  not  only  serve  as  a 
basis  for  estimating  the  cost  of  particular  fabrics,  but 
also  show  at  regular  intervals  the  production,  cost  and 
efficiency  of  the  various  departments  of  the  mill. 

Owing  to  the  unavoidable  fluctuations  in  mill  work 
a  statement  for  a  period  of  four  weeks  cannot  safely 
be  taken  as  the  average  for  the  year  or  half-year.  This 
average  is  obtained  by  compiling  annual  or  semi-an- 
nual statements  showing  the  production  and  cost  of 
each  department.  The  illustrations  show  statements 
of  cost  for  three  mills,  the  Arbela  Woolen  Mills,  the 
Bayard  Woolen  Mills  and  the  Chantilly  Worsted 
Mills.  These  are  based  on  actual  operations  and  dis- 
close, not  only  the  production  and  cost  in  each  mill,  but 
also  by  comparison  certain  shortcomings  in  the  opera- 
tion of  the  three  mills. 

The  name  of  the  mill,  period  covered,  and  the  ma- 
chinery in  operation  appear  at  the  top  of  the  report. 

In  the  first  column  the  department  of  manufactur- 
ing or  item  of  cost  is  given ;  in  the  second,  the  produc- 
tion for  the  period  named ;  third,  the  amount  paid  for 
labor;  fourth,  the  expenses  other  than  labor;  fifth, 
average  cost  of  labor  per  unit  of  production;  sixth, 
average  cost  of  other  expenses  per  unit  of  production. 

The  production  of  each  department  of  manufactur- 


WOOL  COST  FINDING  29 

ing  is  given  in  the  second  column  in  the  respective 
units : 

Wool  Sorting.     Weight  of  grease  wool  sorted. 

Scouring  and  Dyeing:  Clean  weight  of  wool,  yarn 
or  cloth  dyed. 

Peking :  Weight  of  stock  picked. 

Carding  and  Spinning:  The  number  of  runs  (1600 
yards)  of  yarn  spun.  The  runs  of  yarn  per  woolen 
card  and  per  spindle  in  10  hours  and  the  average  size 
of  the  yarn  spun  are  given  for  comparison. 

Spooling  and  Dressing:  Section  cuts  dressed.  One 
cut  dressed  with  6  sections  counts  as  6  section  cuts. 

Weaving :  Cuts ;  actual  yardage ;  equivalent  yardage 
based  on  50  picks  per  inch.  The  average  picks  per 
inch,  ounces  per  yard  and  efficiency  of  the  looms  are 
given  for  comparison. 

Finishing :  Finished  yardage.  The  cuts,  ounces  per 
yard  and  total  weight  are  given  for  comparison. 

A  separation  of  the  day  labor  from  the  spinning 
wages  in  the  spinning  department,  as  in  the  Bayard 
Mills,  discloses  whether  any  change  in  the  cost  of  spin- 
ning is  due  to  changes  in  the  wages  of  the  day  hands 
or  spinners. 

The  number  of  cuts  woven  and  finished  shows  tiie 
balance  of  production  between  these  two  connecting 
processes.  The  production  of  the  finishing  room  is 
given  in  finished  yards. 

The  production  of  the  looms  is  measured  in  yards. 
The  number  of  picks  per  inch  has  an  important  influ- 
ence on  the  yardage.  As  the  average  picks  per  inch 
are  constantly  varying  in  a  mill  making  a  number  of 
fabrics,  the  yardage  does  not  indicate  the  efficiency  of 
the  looms.  The  less  picks  per  inch  the  greater  the 
length  woven. 


30 


WOOL  COST  FINDING 


For  this  reason  it  is  necessary  to  reduce  the  actual 
yardage  to  an  equivalent  number  of  yards  woven  with 
a  standard  number  of  picks.  In  the  three  statements 
50  picks  per  inch  is  taken  as  the  standard.  In  the 
Arbela  Mills  the  actual  number  of  picks  per  inch  was 


Q^.^LA^t^^pfXC*Ct  (/^*'^^itA.'€^fl»^ 


frzL^t^o^ 


(S^f^^ 


^t-^-o-t 


^A**»Jt 


—-Tff carfax,  r: 


c/ r*'*<^t'^y-**<Jf 


^^JOf 


ajy>i^i^j7^  \ 


/8 


og>A6h 


f¥^yi^ 


. ?z  U 


ZSioi* 


^99 


n 


n 


ce^ 


rz^  .fitfizsi 


.C/ySf4, 


Fig.  I.     Record  of  Production  and  Cost 


51.4,  consequently  the  actual  length  woven,  280,761 
yards,  is  equivalent  to  288,622  yards  having  50  picks 
per  inch: 

(280,761  X  51.4)  -^  50  =  288,622. 

On  the  other  hand,  the  347,241  yards  woven  in  the 
Bayard  Mills  averaged  44.29  picks  per  inch.     This  is 


WOOL  COST  FINDING 


31 


equivalent  to  307,586  standard  yards  of  50  picks  per 
inch: 

(347,241  X  44-29)  ^  50  =  307»586. 

In  the  former  case  the  standard  yardage  is  greater 
than  the  actual  because  the  average  picks,  51.4,  are  in 


■^^M 


/ 


(U/yaLAtt*OUit 


(P/k.^.'tl^^Ji^ 


C7*^^9-J 


dx/iand^ 


,  CO  *f^. 


.V4 


yj"    ^siS/y 


2v^3 


J-a.x/ 


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6a  9 


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% 


1§ 


. .  i???:?^:^  "ZEZH  ^  ^<y  ^os  90 


P.^OJT.i.^^i^  ^.^^SlfJ^. 


/^/ 


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u 


OS 


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"/'yx^ 


(TJJi 


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^^. 


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7Z 


99 


// 


,C06 


5f5;.... 


on 


T^TS^ 


>$? 


,/iss-Sp^, 


Fig.  2.    Record  of  Production  and  Cost 


32 


WOOL  COST  FINDING 


excess  of  the  standard  of  50.     In  the  latter  case  the 
standard  yardage  is  less  than  the  actual  because  the 


'^'^i.^rxm^ 


S-oJ^^A^tX^rnA/iA' 


A' 


(tK-^-^Lzj^.^ 


^Oy^^-^ 


.^Sfrf..  ?2 . (1  .^  / 


J3Q3  fi 


//V><P^^4l/, 


/<f/ 


cc6di6^, 


/^^<»«-^fi^ „ 


^1/^,  a-/»t^  <&,  «^S»4f 


^y/f^ 


%7. 


2£2±±^± 


'  ^^^y\ 

If^ocAV—M'tSsSX 

W^9y,yzo/'StM 


zd,c3a%l6, 
/yy^. 


2k 


U^i'ii-'X'Ql 


S¥^ 


fj6  X^  13 


7 


¥^2 


'6c 


'^,yizS'i.3/yX$^ 


.oa33^. 


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7j  .033 


U 


03 


J^. 


^A'^^J'.?.^  '^^^^^t^t 


4\ 


{6^^ 


¥iQ  3.    Record  of  Production  and  Cost 


WOOL  COST  FINDING  33 

actual  picks,  44.29,  are  less  than  the  standard,  50.  This 
yard  of  50  picks  per  inch  is  called  the  standard  and  is 
marked  "S  yard"  on  the  statements. 

Fixed  Charges  Per  Yard 

The  production  of  the  mills  in  standard  yards  serves 
as  a  basis  for  calculating  the  average  for  the  fixed 
charges.  Take,  for  example,  the  fuel  cost,  $3,610.42, 
in  the  Arbela  Mills.  This  divided  by  288,622  gives 
$.0125  as  the  cost  of  fuel  per  standard  yard. 

The  fixed  charges  include  all  expenses  that  cannot 
be  directly  charged  to  some  particular  process  of  man- 
ufacture, such  as  rent,  insurance,  taxes,  fuel,  etc. 

The  cost  of  weaving,  other  than  the  weavers'  wages, 
is  included  for  convenience  in  the  general  charges,  for 
which  the  averages  are  based  on  the  standard  yard  of 
50  picks  per  inch. 

A  defect  of  the  Arbela  Mills  statement  is  that  too 
many  items  are  included  under  "Miscellaneous."  Stat- 
ing the  labor  cost  for  iron  and  wood  work  and  fuel 
separately,  as  in  the  report  of  the  Bayard  Mills,  is 
preferable,  as  it  gives  a  better  view  of  the  details  of 
the  general  expense  account. 

This  defect  is  even  more  marked  in  the  expense  of 
the  Chantilly  Mills,  as  some  of  the  expense  has  been 
apportioned  among  the  operating  departments,  except 
in  the  case  of  the  dyehouse.  The  labor  cost  of  the 
Chantilly  mill  is,  however,  classified  better  than  in 
either  of  the  other  two  mills. 

In  the  column  marked  "Average"  is  placed  the  aver- 
age cost  of  labor  and  expense  calculated  by  the  unit  of 
production  for  each  department.  Thus  the  cost  of 
sorting  is  given  per  pound  of  grease  wool ;  of  carding 


34  WOOL  COST  FINDING 

and  spinning,  per  run  of  spun  yarn;  of  spooling  and 
warping  in  the  Arbela  Mill,  per  warp  cut ;  in  the  Bay- 
ard Mills  per  section  cut;  and  in  the  Chantilly  Mills 
per  yard  of  i,ooo  ends;  of  day  weaving,  per  standard 
yard;  of  piece  dyeing  in  the  Bayard  Mills,  per  yard, 
and  in  the  Chantilly  Mills,  per  pound.  In  the  Bayard 
Mills  fulling,  gigging  and  bur  dyeing  were  such  im- 
portant and  distinct  processes  that  they  are  classified 
separately. 

From  these  periodical  statements  a  list  of  cost  aver- 
ages is  made  up  for  use  in  estimating  the  cost  of  indi- 
vidual fabrics.  If  the  mill  in  quetion  is  up-to-date  in 
every  respect,  and  equipped  to  produce  cloth  at  a  cost 
as  low  as  or  lower  than  its  competitors,  the  averages  are 
taken  as  found  in  the  statement,  and  the  estimate  of 
cost  then  made  for  each  fabric,  as  will  be  more  fully 
explained  further  on.  A  test  of  the  accuracy  of  these 
estimates  is  made  after  an  inventory  has  been  taken 
and  the  mill  books  closed.  The  yardage  of  each  style 
shipped  from  the  mill  is  extended  at  the  estimated  cost 
and  the  total  compared  with  the  actual  cost  as  shown 
by  the  mill  books.  The  Arbela  Mills  were  well  suited 
to  stand  such  a  test,  as  they  were  well  arranged  and 
handicapped  by  no  serious  defect  in  equipment. 

In  the  Bayard  and  Chantilly  Mills  the  conditions 
were  different.  The  Bayard  Mills  were  handicapped 
by  antiquated  machinery,  particularly  in  the  spinning 
department,  and  by  an  expensive  power  plant.  The 
cost  at  the  Chantilly  Mills  was  excessive  owing  to  the 
high  cost  for  fuel  and  iron  and  wood  work.  We  find 
the  cost  of  fuel  in  the  three  plants  to  be : 


WOOL  COST  FINDING  35 

Arbela  Mill  .0125  per  S  yd. 

Bayard  Mill  .0262      ** 

Chantilly  Mill  .0451      " 

The  cost  of  labor  for  iron  and  wood  work  in  the 
Bayard  and  Chantilly  Mills  was : 

Bayard  Mill  .0115  per  S  yd. 

Chantilly  Mill  .0334      " 

The  average  size  of  yarn  spun  in  the  Arbela  and 
Bayard  Mills  was  nearly  the  same.  The  labor  cost  of 
spinning  was  as  follows: 

Arbela  Mill  .49  per  100  runs 

Bayard  Mills  .83    "     100      " 

Frequently  market  conditions  are  such  that  the  mar- 
gin of  profit  either  disappears  entirely  or  becomes  so 
small  that  only  the  best  mills  can  avoid  a  loss.  At 
such  times  an  estimate  of  the  cost  of  a  fabric,  based 
on  the  actual  cost  of  the  goods  in  a  mill  handicapped 
as  were  the  Bayard  and  Chantilly  Mills,  will  be  above 
the  net  selling  price  of  the  goods.  If  the  manager  of 
such  a  mill  offers  the  goods  at  prices  based  on  actual 
cost,  the  prices  will  be  so  high  as  to  prevent  a  sale.  If 
he  sells  at  the  market  price  the  mill  will  show  a  loss. 

The  mill  owner  has  two  other  courses  open  under 
such  conditions.  The  mill  can  be  remodeled  to  enable 
goods  to  be  manufactured  at  less  cost,  or  the  excess  of 
cost  due  to  the  operation  of  old  machinery  can  be 
charged  to  the  old  equipment,  the  estimates  of  cost  in 
the  meantime  being  based  upon  what  the  cost  should 
be,  instead  of  what  it  is.  The  application  of  the  latter 
policy  is,  of  course,  limited  by  the  financial  resources 
of  the  manufacturer. 


36  Wool  cost  finding 

Cost  Averages 

A  list  of  cost  averages  for  the  different  departments 
is  made  up  from  the  mill  statements  covering  a  period 
of  at  least  six  months,  during  which  the  mill  was  in 
full  operation.  These  averages  are  used  for  estimat- 
ing the  cost  of  individual  fabrics.  Care  should  be 
taken  to  compile  the  averages  from  a  period  during 
which  the  production  of  the  department  was  not  de- 
creased by  any  unusual  cause,  such  as  stopping  of  ma- 
chinery, etc.,  otherwise  the  estimates  will  be  too  high. 
With  a  fair  production  the  averages  show  the  best  that 
can  be  expected  in  actual  operation  of  the  plant. 

The  list  of  cost  averages  is  made  up  in  the  following 
form  for  reference : 
Cost  Averages  for  Processes: 

Sorting  per  lb. 
Scouring  and  dyeing 
Picking  and  carding  per  run 
Spinning  per  run 
Spooling  and  dressing,  section  cut 
Weaving,  other  than  price  list 
Piece  dyeing  per  yard 
Finishing  per  yard 
Fixed  Charges  per  S  Yard  of  50  Picks : 
Day  labor 
Iron  and  wood 
Fuel 
Freight 
General 

Insurance  and  taxes 
Interest 
Depreciation 
Rent  (Interest  on  plant) 
Total  fixed  charges 


Labor 

Expense 

$.004 
.006 

Special 

.005 

.002 

.005 

.0002 

•055 
Fixed 

.005 

Special 

.055 

.01 

.019 

.002 

.Oil 

.002 

.006 

.026 

.019 

.005 
.006 

.01 

.034 

.011 

.029 

•055 

•125 

WOOL  COST  FINDING 


37 


These  averages  enable  estimates  of  cost  to  be  made, 
not  only  for  each  fabric  made  in  the  particular  mill, 
but  for  any  fabric  made  by  a  competitor,  and  are  conse- 
quently invaluable  in  measuring  and  meeting  compe- 
tition. 


y  S!e9- y>^'Zy^     ^  3  2.  c  A^  >x^/!u^ 


^^fiaAT^ntA'M' 


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Jijt^^itS2l% 


(P^v.oJ>cte.tuo  ^ 


^ojO^t, 


Gx/^mH 


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(Sy/ui^H^ 


a/ 


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w 


JZf^y 


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copc¥dl 

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TocoiST, 


93  9  f 


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toc^n^'Oc/SjUl 


Fig.  4.     Record  of  Production  and  Cost 

The  cost  of  dyeing  should  be  estimated  separately 
for  each  fabric  owing  to  the  wide  variations  in  this 
item. 

The  day  labor  in  the  weave  room  is  treated  as  a 
fixed  charge. 


38  WOOL  COST  FINDING 


Cost  of  Each  Fabric 

The  regular  reports,  monthly,  semi-annual  or  an- 
nual, show  the  production,  total  cost  and  average  cost 
per  unit  of  production  in  each  department  and  for  each 
item  of  general  expense.  These  records  not  only 
show  the  operations  of  the  mill  and  enable  comparisons 
to  be  made  between  different  mills,  but  they  also  supply 
the  basis  for  estimating  the  cost  of  each  fabric. 

These  estimates  of  cost  are  made  for  the  fabrics 
manufactured  in  the  mill,  in  order  that  the  proportion- 
ate cost  that  should  be  borne  by  each  may  be  known 
and  the  selling  price  fixed  accordingly.  The  estimates 
of  cost  are  also  made  for  fabrics  manufactured  in 
other  mills  in  order  that  the  manufacturer  may  be  able 
to  judge  intelligently  of  the  competition  he  has  to 
meet,  or  may  be  able  to  decide  whether  a  given  fabric, 
if  made  in  his  mill,  would  be  likely  to  yield  a  profit. 

The  statistical  uses  of  the  cost  records  have  already 
been  explained  and  it  now  remains  to  illustrate  the 
estimates  of  cost  based  on  the  mill  records.  The 
method  of  estimating  cost  is  shown  at  Fig.  5,  which  is 
an  estimate  of  the  cost  of.  a  cotton  warp  fabric.  The 
style  number,  woven  and  finished  widths  and  weights, 
and  the  dressed,  woven  and  finished  lengths  of  the 
piece,  are  first  given.  Then  comes  the  estimate  of  ihe 
quantity  and  cost  of  the  stock  to  make  a  cut  of  the 
cloth.  The  quantities  of  yarn  required  are  calculated 
by  the  methods  explained  in  ''Straight  Line"  Textile 
Calculations. 


WOOL  COST  FINDING 
Raw  Material  Cost 


39 


The  prices  for  the  materials  are  fixed  by  the  manu- 
facturer to  conform  to  the  market  conditions  on  which 
he  wants  the  estimate  based.     It  may  be  desirable  to 

^''  ^7  ESTIMATE  OF  COST 

OaU,   <^^f?.f9*^  T 

STYLE.    ^7^^ 

IV^rveH.       ^7    "  PinisM,   ^^^-  Fimir/ud,     J~J-^ , 

Fuushtd.     ^^^  ' 

STOCK. 


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f. 


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srr 
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COST  PER  FINISHED  YARD. 
Slock.       '7^^ 


Tctcl/'^^'^ 

Fig.  5.    Estimated  Cost  of  a  Cotton  Warp  Fabric 


40  WOOL  COST  FINDING 

base  the  estimate  on  the  actual  cost  of  the  raw  stock  or 
on  the  cost  of  the  material  if  purchased  when  the  esti- 
mate is  made  and  which  may  be  above  or  below  pre- 
vailing prices. 

When  two  or  more  grades  of  stock  are  mixed  to- 
gether before  manufacturing,  the  average  cost  is  calcu- 
lated in  the  column  headed  ''Mixture  of  Stock,"  allow- 
ance being  made  for  shrinkage  from  raw  stock  to  yarn 
and  for  the  value  of  the  by-products.  The  result  is  the 
cost  of  stock  per  pound  of  yarn,  at  which  the  respective 
quantities  are  extended  in  the  columns  headed  "Stock." 
The  total  cost  of  raw  material  per  cut  of  cloth  is  found 
by  adding  the  items  as  shown. 

Cost  of  Manufacturing 

Next  comes  the  cost  of  manufacturing.  The 
method  consists  in  first  calculating  the  material  that 
must  be  passed  through  each  department  of  the  mill 
to  make  a  cut  of  cloth.  The  estimate  for  the  fixed 
charges  is  based  on  the  production  of  the  looms  as 
measured  in  standard  yards  of  cloth  with  50  picks  per 
inch.  Accordingly  the  woven  length,  37  yards,  is 
placed  opposite  each  item  of  general  expense  and  ex- 
tended at  the  proportionate  price  per  standard  yard. 
Take  for  illustration  the  cost  for  general  labor.  The 
mill  record  shows  this  item  to  be  $.027  per  standard 
yard  of  50  picks  per  inch.  The  fabric,  Style  3704, 
is  woven  with  60  picks,  making  it  necessary  to  increase 
the  average  cost  per  standard  yard  by  20  per  cent. 
Thus: 
($.27  X  60)  -^  50  =  $.0324,  general  labor  per  yard. 

It  is  not  necessary  to  make  this  calculation  for  every 
estimate.     After  the  averages  per  standard  yard  for 


WOOL  COST  FINDING  4t 

the  various  items  are  obtained  from  the  mill  records, 
they  are  increased  or  decreased  to  correspond  to  differ- 
ent filling  sets,  say  from  20  to  70  picks,  and  arranged 
in  tabular  form  so  as  to  be  ready  for  use  when  re- 
quired. For  example,  the  average  per  yard  for  gen- 
eral labor  would  be  $.0216  for  40  picks;  $.027  for  50 
picks;  $.0324  for  60  picks;  with  other  filling  sets  in 
proportion. 

The  quantities  of  material  passed  through  each  de- 
partment to  make  a  cut  of  the  cloth,  having  been  en- 
tered in  the  column  headed  ''Quantity  per  Cut,''  are 
extended  as  shown  at  Fig.  5,  at  the  respective  cost 
averages  obtained  from  the  mill  records,  the  amounts 
being  entered  under  ''Labor"  and  "Supplies."  The 
general  expense  items  are  extended  and  entered  in  liic 
same  columns.  The  total  of  these  extensions  is  the 
cost  per  cut  for  labor  and  for  expense. 

We  now  have  estimated  the  cost  per  cut  for  raw 
material,  labor  and  supplies,  the  cost  per  finished  yard 
being  found  by  dividing  these  totals  1)y  the  number  of 
yards  in  a  finished  cut : 

Stock  $24.08  ^33.3  =  $  .723  per  yard 

Labor  12.22 -r- 33.3  =  $  .367  per  yard 

Supplies  4.46  -^  33.3  =  $  .134  per  yard 

Cost  per  finished  yard  1.224 

The  cost  thus  found  covers  all  expenses  for  stock 
and  manufacturing  at  the  mill  and  is  the  estimated  cost 
of  the  cloth  as  it  leaves  the  mill.  The  cost  of  selling, 
which  is  estimated  separately,  is  usually  based  on  the 
selling  price  of  the  goods.  If,  for  example,  the  sell- 
ing cost  has  been  found  to  be  20  per  cent,  of  the  sell- 


42  WOOL  COST  FINDING 

ing  price,  the  total  cost  of  the  cloth,  Style  3,704,  in- 
cluding selling  expenses,  will  be: 
1.224 -^  .80  =  $1.53. 

Any  increase  of  the  selling  price  above  this  cost  rep- 
resents profit  subject  to  the  deduction  of  20  per  cent, 
for  the  cost  of  selling.  If,  for  example,  this  style, 
3,704,  was  sold  for  $2.00  per  yard,  the  profit  would  be 
as  follows : 

Selling  price  $2.00 

Selling  cost  .40 

1.60 
Mill  cost  1.224 

Profit  .376 

The  blank  form  used  for  the  estimate  at  Fig.  5  can 
be  dispensed  with  if  desired.  After  the  cost  averages 
have  been  obtained  from  the  mill  records  and  the 
method  of  estimating  is  clearly  understood,  it  is  pos- 
sible to  enter  these  estimates  in  an  ordinary  blank  book, 
say  5  in.  X  8  in.,  abbreviating  many  of  the  operations 
without  impairing  their  accuracy.  Time  is  saved  in 
this  way  and  the  estimates  are  kept  together  in  a  con- 
venient form  for  reference  and  comparison.  Figs.  6 
and  7  are  estimates  made  in  this  way  for  a  woolen 
frieze  and  worsted  serge.  The  dressed,  woven  and 
finished  lengths  of  a  cut  are  at  the  left  of  the  style  num- 
ber. The  percentages  below  the  stock  mixture  are  for 
the  losses  in  manufacturing,  the  first  from  loose  stock 
to  yarn,  and  the  next  from  yarn  to  finished  cloth.  The 
quantity  of  stock  is  calculated  from  the  finished  weight 
and  percentage  of  loss,  this  method,  w^hich  is  both  ac- 
curate and  direct,  being  possible  only  when  the  fabric 
is  made  of  one  mixture  throughout.  Take  for  illus- 
tration Style  624,  Fig.  6: 


WOOL  COST  FINDING  43 

34      (ozs.)  -^  .84  =  40.5  ozs.  yarn 
40.5   (ozs.)  -^  .70=  57.8  ozs.  stock 
The  accuracy  of  this  result  depends  upon  the  accu- 
racy with  which  the  losses  between  raw  stock  and  yarn 

¥^,  3&, scr,    6>  2  "^^^^^flLe  S^^^iSSr" 

^J^n^iiJ^Sc^  ^  C*/-^  ^X3     //^/       /7d 
3^'r:^^C^   3G       OZ^    CZS    /,Of       0OO 

id)2i^  /.%z3 

Fig.  6.    Estimated  Cost  of  a  Frieze 

and  between  yarn  and  cloth  are  determined.  These 
percentages  can  be  determined  closely  by  tests  of  goods 
going  through  the  mill. 


44  WOOL  COST  FINDING 

Cost  of  Manufacturing  Worsted  Yam 

When  worsted  spinning  and  weaving  are  carried  on 
in  the  same  mill,  it  will  generally  be  found  more  satis- 
factory to  separate  the  cost  account  of  the  worsted  de- 
partment, calculate  the  cost  of  worsted  yarn  per  pound, 

^s;^^,  '/4> ,        y<P^  ^^^^^.  <^^^^  /Bpy/^ 

^'I-tJiC^     ^^'^     ^^6    OZ3      /.6^     /.0€ 
0^£^^/»JLjefj     <^0  '/     o^    0^2^    Z,Qo    Z,4 

/ait? 

Fig.  7.    Estimated  Cost  of  a  Worsted  Serge 

and  then  estimate  the  cost  of  each  worsted  fabric  as  if 
the  yarn  had  been  purchased  instead  of  made  in  the 
mill  in  which  the  cloth  is  woven.  Nearly  every  weav- 
ing mill  to  which  a  worsted  spinning  plant  is  attached 
buys  and  sells  more  or  less  yarn.  If  the  yarn  spun  in 
the  mill  is  treated  as  if  it  were  purchased  the  estimates 
of  the  cost  of  individual  fabrics  will  be  more  uniform 


WOOL  COST  FINDING 


45 


and  better  suited  for  comparison  than  if  an  attempt 
is  made  to  estimate  the  cost  of  each  worsted  depart- 
ment for  each  fabric  when  made  of  home  yarn,  while 
necessarily  omitting  such  details  when  the  yarn  is  pur- 
chased and  the  first  cost  includes  the  cost  of  manufac- 
turing the  yarn. 

In  other  words,  the  manufacture  of  worsted  yarn 
in  a  mill  where  the  yarn  is  woven  into  cloth  should  be 


^yjc4u,^.^jc*4,.>'^*^*i^ 


^fe^o^Jli^ '  C^>A«*^«^^«^ 


^Xy^*-^^ 


(Qrx^pjuuJi 


^I^ 


¥0 


^/< 


02. 


^S/i-S-/ 


Ctotif. 


r9^7- 


^^/>fZ^ 


z<^62o 


^e 


0/ 


2^ 


00    /eooo 


9^ 


iff  £2- 


€l 


iL 


^M^. 


o/j%e^ 


Fig.  8.     Record  of  Production  and  Cost  in  a  Woolen 
Yarn  Mill 

treated  as  an  entirely  distinct  part  of  the  business.  If 
this  is  done  a  separate  system  of  production  and  cost 
records  should  be  kept  for  the  worsted  yarn  depart- 
ment, but  based  on  the  same  general  principles  as  for 
the  remainder  of  the  mill.  This  method  is  illustrated 
by  the  accompanying  report,  Fig.  4,  of  the  production 
and  cost  of  the  worsted  yarn  department  of  the  Chan- 
tilly  Worsted  Mills,  for  which  the  report  covering  all 
the  operations  has  already  been  shown. 

The  production  of  the  spinning  frames  in  hanks  of 


46  WOOL  COST  FINDING 

560  yards  is  taken  as  a  basis  for  calculating  the  fixed 
charges.  This  unit,  the  hank,  is  the  standard  of  pro- 
duction for  worsted  yarn,  as  the  yard  of  50  picks  per 
inch  is  the  standard  for  cloth. 

Cost  of  Manufacturing  Woolen  Yarn 

When  woolen  yarn  is  spun  and  woven  into  cloth  in 
the  same  mill  one  estimate  of  cost  covers  all  the  proc- 
esses from  raw  stock  to  finished  goods,  without  sep- 
arating the  cost  of  the  yarn,  as  in  the  case  of  worsted. 
In  a  spinning  mill  making  woolen  yarn  only,  it  be- 
comes necessary  to  estimate  the  cost  of  the  yarn,  the 
method  being  based  on  the  principles  already  explained. 
The  cost  of  the  raw  material  is  calculated  from  the  cost 
of  the  picked  stock  per  pound  and  the  shrinkage  in 
carding,  spinning  and  twisting.  The  cost  of  manufac- 
turing is  found  by  calculating  the  quantity  of  material 
that  must  be  passed  through  each  process  to  make  a 
given  quantity  of  yarn,  say  1,000  lbs.,  and  by  extend- 
ing these  quantities  at  the  respective  cost  averages  ob- 
tained from  the  production  and  cost  records  of  the 
mill. 

The  production  of  the  mules  in  runs  of  1,600  yards 
is  taken  as  a  basis  for  apportioning  the  cost  of  the 
fixed  charges.  This  unit,  the  run,  is  the  standard  of 
production  for  woolen  yarn,  as  the  yard  of  50  picks  per 
inch  is  for  cloth,  and  the  hank  of  560  yards  is  for 
worsted  yarn. 

As  the  method  of  calculating  the  cost  of  yarn  is 
based  on  the  same  principles  as  those  already  explained 
in  estimating  the  cost  of  cloth,  we  will,  instead  of  re- 
peating that  explanation  here,  give  a  few  examples  in 
estimating  the  cost  of  carded  woolen  yarn. 


WOOL  COST  FINDING  47 

Fig.  8  is  the  production  and  cost  statement  of  a 
woolen  yarn  mill  running  on  yarns  varying  from  3  to 
6  runs.  This  statement  is  similar  to  those  at  Figs,  i, 
2,  3,  and  4,  showing  the  production  and  cost  at  each 
process  and  the  amount  of  the  fixed  charges.  The  cost 
averages  are  based  on  the  respective  production  units, 
that  for  the  fixed  charges  being  the  run  of  1,600  yards. 


//S:u.t  ^oy.// 


Fig.  9.    Estimated  Cost  of  Woolen  Yarn 

Having  compiled  this  production  and  cost  record  of 
the  mill,  calculating  the  cost  of  any  particular  size  or 
kind  of  yarn  made  in  the  mill  becomes  an  easy  matter. 


48  WOOL  COST  FINDING 

Fig.  9  is  an  estimate  of  a  5-run  wool-dyed  yarn.  First 
conies  the  stock  mixture  and  price  per  pound.  From 
this  and  the  shrinkage,  18  per  cent.,  in  weight,  the  cost 
of  raw  stock  per  pound  of  yarn  is  found  to  be  $1,163. 
Next  comes  the  cost  of  manufacturing.  The  quan- 
tity of  material  that  must  be  run  through  each  process 
in  order  to  produce  i  ,000  lbs.  of  yarn  is  calculated  and 
extended  at  the  respective  cost  averages  for  labor  and 

d<!s'4€>^Ljo  ^77^*  co/S^  ^006       <'^y       '^^ 

($4UtpCiui^J»C^,COS'3     ^^2L/      /<f/,^    ^,3^ 

^P^  '9*^7 

Fig.  10.    Estimated  Cost  of  Woolen  Yarn 

expense  as  taken  from  the  production  and  cost  state- 
ment of  the  mill,  Fig.  8.  The  totals  of  these  itema 
show  the  cost  of  manufacturing  1,000  lbs.  of  yarn,  the 


WOOL  COST  FINDING  49 

cost  per  pound  being  found  by  moving  the  decimal 
point  three  places  to  the  left.  The  cost  of  stock,  labor 
and  expense  are  then  combined  to  give  the  mill  cost 
$1,385  per  pound  of  yarn. 

Fig.  10  is  an  estimate  of  the  cost  of  a  3  1/2-run 
gray  yarn  made  in  the  same  mill.  A  comparison  of 
this  estimate  with  that  at  Fig.  9  for  a  dyed  yarn  shows 
very  clearly  not  only  the  difference  in  the  cost  of  the 
two  yarns,  but  also  the  reasons  for  the  difference.  The 
lower  cost  of  the  raw  stock,  the  smaller  quantity  of 
wool  sorted  and  scoured,  the  omission  of  the  dyeingj 
process  and  the  reduced  number  of  runs  required  for 
1 ,000  lbs.  of  yarn  combine  to  lower  materially  the  cost 
of  the  3  1/2-run  yarn  below  that  of  the  5-run  yarn. 


Cooley  &  Marvin  Co. 

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